How much simple interest would you earn on $1,000 if you left it in an account for 9 months? The account pays 3% simple interest

Question

3 years ago

15

for 1 year. Explain how you found your answer.

1 answer:

lubasha [3.4K] · Answer 1 · 2022-03-06T18:22:14+03:00

Answer:

$I=\$22.5$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

$t=\frac{9}{12}\ years$ ----> one year is equal to 12 months

$P=\$1,000\\r=3\%=3/100=0.03$

substitute in the formula above

$I=1,000(\frac{9}{12})(0.03)$

$I=\$22.5$